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Phreesia (PHR)
NYSE:PHR
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Phreesia
(NYSE:PHR)
58Neutral
Positive Factors
Digital expansion
PHR has made significant progress expanding the use of digital patient intake, highlighting a long runway for growth as digital solutions continue to take share.
Financial performance
Phreesia reported better-than-expected results with estimated non-GAAP EPS and adjusted EBITDA both surpassing consensus expectations.
Market position
Phreesia has a strong market position, facilitating over 14% of patient visits in the U.S. and working with top pharmaceutical brands.
Negative Factors
Macroeconomic caution
Despite the strong performance in 4Q, there was no increase in FY'26 guidance for revenue or adjusted EBITDA, reflecting caution due to the macroeconomic environment and early stage of the fiscal year.
Revenue visibility
There is higher variability in Network solutions revenue visibility, which requires continual selling of ad programs.
Subscription revenue
Subscription revenue fell slightly short of estimates, suggesting that the Network Solutions segment will need to drive the majority of revenue growth moving forward.
Phreesia (PHR) vs. S&P 500 (SPY)
Market Cap
$1.51B
Dividend YieldN/A
Average Volume (3M)487.59K
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth17.83%
EPS Growth59.64%
CountryUS
Employees2,082
SectorHealthcare
Sector Strength60
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.11
Shares Outstanding58,772,450
10 Day Avg. Volume368,884
30 Day Avg. Volume487,591
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.05
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.59
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$31.33Price Target Upside24.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Phreesia Business Overview & Revenue Model
Company DescriptionPhreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. Its Phreesia Platform offers a suite of solutions to manage the patient intake process, as well as an integrated payments solution for processing of patient payments. The company deploys its platform in a range of modalities, such as Phreesia Mobile, a patients' mobile device; Phreesia Dashboard, a web-based dashboard for healthcare services clients; PhreesiaPads, which are self-service intake tablets; and Arrivals Kiosks that are on-site kiosks. Its Phreesia Platform also provides a registration solution to automate patient self-registration; revenue cycle solution, which offer insurance-verification processes, point-of-sale payments applications, and cost estimation tools; access solutions that offers appointment scheduling system for online appointments, reminders, and referral tracking; and life sciences solution to deliver targeted and clinically relevant marketing content to patients. In addition, the company's Phreesia Platform offers clinical support solution, which collects clinical intake and patient reported outcome (PRO) data for approximately 25 specialties, as well as enables healthcare services clients to communicate with their patients through surveys, announcements, text and email messaging, and health campaigns; and COVID-19 support modules for managing COVID-19 vaccine delivery and identify vaccine-hesitant patients, screening for self-reported COVID-19 risk factors, enabling contactless check-in during in-person visits, and collecting intake information during telehealth visits. It serves patients; single-specialty practices, multi-specialty groups, and health systems; and pharmaceutical, medical device, and biotechnology companies. The company was incorporated in 2005 and is headquartered in Raleigh, North Carolina.
How the Company Makes MoneyPhreesia makes money primarily through a subscription-based revenue model, where healthcare providers pay for access to its software platform. These subscriptions can vary based on the size of the healthcare organization and the specific features utilized. In addition to subscription fees, Phreesia generates revenue from payment processing services, whereby it takes a transaction fee from payments processed through its platform. The company may also benefit from partnerships with medical institutions and insurance companies, leveraging data analytics services to enhance care delivery and operational efficiency.
Phreesia Financial Statement Overview
Summary
Phreesia demonstrates strong revenue growth and a stable equity base. However, persistent losses and negative profitability metrics, such as net profit margin and EBIT margin, weigh down the financial performance score. Positive cash flow management is a strong point, yet overall profitability remains an area for improvement.Income Statement
Phreesia's revenue has consistently grown, evident from a TTM revenue increase of 17.8% compared to the previous year. However, the company is still facing profitability challenges with a negative net profit margin and EBIT margin. Gross profit margin is healthy at 68.5% TTM, indicating strong core business fundamentals. The negative EBITDA margin highlights ongoing operational inefficiencies.60
Neutral
Balance Sheet
The balance sheet reveals a solid equity base with an equity ratio of 68.2% TTM, indicating a stable financial structure. However, the debt-to-equity ratio remains low at 0.03, suggesting minimal leverage. Return on Equity is negative due to persistent net losses, reflecting a need for improved profitability to enhance shareholder value.55
Neutral
Cash Flow
Phreesia shows progress in cash flow management, with a positive operating cash flow and a remarkable improvement in free cash flow from the previous year. The operating cash flow to net income ratio is positive, suggesting effective cash conversion despite net losses. However, the free cash flow to net income ratio is constrained by ongoing negative net income.65
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 419.81M | 356.30M | 280.91M | 213.23M | 148.68M | Gross Profit |
| 284.88M | 232.29M | 171.64M | 131.84M | 96.29M | EBIT |
| -54.99M | -131.77M | -176.55M | -116.82M | -25.67M | EBITDA |
| -25.58M | -104.00M | -145.48M | -92.30M | -7.62M | Net Income Common Stockholders |
| -58.53M | -136.88M | -176.15M | -118.16M | -27.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 84.22M | 87.52M | 176.68M | 313.81M | 218.78M | Total Assets |
| 388.42M | 370.33M | 370.06M | 494.48M | 326.67M | Total Debt |
| 17.80M | 11.98M | 9.18M | 15.80M | 14.32M | Net Debt |
| -66.42M | -75.54M | -167.50M | -298.01M | -204.46M | Total Liabilities |
| 123.61M | 118.88M | 82.24M | 77.20M | 63.36M | Stockholders Equity |
| 264.81M | 251.45M | 287.82M | 417.28M | 263.31M |
| Cash Flow | Free Cash Flow | |||
| 8.29M | -57.48M | -116.33M | -105.52M | -15.69M | Operating Cash Flow |
| 32.38M | -32.38M | -90.12M | -74.71M | 2.89M | Investing Cash Flow |
| -24.09M | -39.67M | -26.20M | -65.23M | -25.09M | Financing Cash Flow |
| -11.49M | -17.11M | -20.41M | 234.97M | 150.66M |
Phreesia Technical Analysis
Positive
25.24
Price Trends
25.34
Negative
26.16
Negative
24.15
Positive
Market Momentum
-0.08
Negative
52.51
Neutral
81.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHR, the sentiment is Positive. The current price of 25.24 is above the 20-day moving average (MA) of 24.36, below the 50-day MA of 25.34, and above the 200-day MA of 24.15, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PHR.
Phreesia Risk Analysis
Phreesia disclosed 57 risk factors in its most recent earnings report. Phreesia reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Phreesia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $1.51B | ― | -22.67% | ― | 17.83% | 59.64% | |
57 Neutral | $1.81B | ― | -113.76% | ― | 229.74% | 70.23% | |
52 Neutral | $5.35B | 3.83 | -41.61% | 2.85% | 17.10% | 1.22% | |
50 Neutral | $1.86B | ― | -38.58% | ― | -4.21% | -544.81% | |
45 Neutral | $1.25B | ― | -16.71% | ― | -2.50% | -30760.27% | |
42 Neutral | $1.27B | ― | -69.30% | ― | ― | -68.13% |
* Healthcare Sector Average
Performance Comparison
PHR
Phreesia
25.24
2.64
11.68%
NEOG
Neogen
5.64
-6.77
-54.55%
ETNB
89bio
8.61
-0.76
-8.11%
BGM
Qilian International Holding Group Limited
11.20
7.74
223.70%
ARQT
Arcutis Biotherapeutics
15.41
7.53
95.56%
SDGR
Schrodinger
25.98
2.26
9.53%
Phreesia Earnings Call Summary
Earnings Call Date:Mar 12, 2025
(Q4-2025)
| % Change Since: 6.05%|
Next Earnings Date:May 28, 2025
Earnings Call Sentiment Positive
The earnings call for Phreesia's fourth quarter fiscal 2025 was largely positive, with strong revenue growth, improved EBITDA, and increased cash flow being key highlights. The company also demonstrated success in AI implementation and offered a positive outlook for fiscal 2026. However, there were some concerns regarding flat sequential growth in total revenue per AHSC and potential macroeconomic impacts.Q4-2025 Updates
Positive Updates
Strong Revenue Growth
Q4 revenue was $109.7 million, up 15% year-over-year.
Improved EBITDA
Q4 adjusted EBITDA was $16.4 million, up $19.9 million year-over-year with an adjusted EBITDA margin of 15%.
Increased Cash Flow
Q4 operating cash flow was positive $16.3 million, up $19.3 million year-over-year. Free cash flow was positive at $9.2 million, up $20.1 million year-over-year.
Network Expansion
Average health care services clients reached 4,341, an increase of 104 from the prior quarter and 379 from the prior year.
Positive Outlook for Fiscal 2026
Revenue range for fiscal 2026 is projected between $400 million and $482 million, with an EBITDA outlook of $78 million to $88 million.
AI Implementation Success
Significant positive impact from AI on forecasting and internal workflows, improving operations and stakeholder outcomes.
Negative Updates
Flat Sequential Growth in Total Revenue per AHSC
The total revenue per AHSC metric showed a 5% year-over-year growth but was flat sequentially. Factors such as the calendar and weather impacts were noted as influences.
Macroeconomic Concerns
Potential impacts from consumer confidence, Medicaid subsidies, and Medicare payment rates were mentioned as areas of concern.
Company Guidance
During Phreesia's Fourth Quarter Fiscal 2025 Earnings Conference Call, Chief Financial Officer Balaji Gandhi highlighted several key metrics and provided guidance for the upcoming fiscal year. The fourth quarter revenue was reported at $109.7 million, marking a 15% increase year-over-year. Adjusted EBITDA reached $16.4 million, up $19.9 million from the previous year, with an adjusted EBITDA margin of 15%. The average number of healthcare services clients grew to 4,341, a quarterly increase of 104 and an annual increase of 379. Total revenue per average healthcare services client was $25,266, representing a 5% year-over-year growth. The company also reported positive operating cash flow of $16.3 million and free cash flow of $9.2 million for the third consecutive quarter. Looking forward, Phreesia set its fiscal 2026 revenue guidance between $400 million and $482 million and maintained its EBITDA outlook at $78 million to $88 million, while anticipating an increase in revenue per client.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.